Expeditors, for the three months ended September 30, 2018, increased its revenues to $2.1bn representing an increase of 16.0% year over year. This was mainly attributable to winning new business and growing volumes with existing customers.
Revenue for Expeditors Airfreight division came to $833m increasing by 13.4% year on year. Ocean freight grew at a slightly lower rate of 4.0%. Capacity in both air and sea freight remained tight meaning that carriers raised freight rates. However, operating margin remained unchanged for the Airfreight division at 25.5% whilst the Ocean Freight division decreased slightly to 25.7%.
Expeditor’s Customs Brokerage division grew at the fastest rate, in terms of revenue, at 33.4%, for the Q3 2018, to $672m. This was partly due to the change in presentation of certain warehouse and distribution revenues which increased revenues and operating expenses in the division by approximately $50m. Operating profit increased, for the division, by 13.0%.
The third quarter performance resulted in diluted net earnings attributable to shareholders per share (EPS) increasing 39% to $0.92.
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